China Tightens Regulations on Stock Index Futures Short Selling
Chinese securities regulators have reportedly urged hedge fund managers to limit short selling in the stock index futures market in an effort to stabilize sinking stocks, particularly cautioning against "naked" short selling conducted for speculative purposes. The move comes as the blue chip CSI300 Index hits near five-year lows, prompting government vows to steady capital markets amidst foreign selling, a property crisis, and a shaky economic recovery. Regulators have hinted at curbing shorting activities using stock index futures and nudged some investors to unwind heavy short positions, with signs of a spike in shorting interest observed.
